Oil recovery systems are not new and apparatus for the separation of oil from water is well known and is the subject of extensive and continuing development. In U.S. Pat. No. 4,051,024, there is shown a highly effective and simple apparatus and method for separating oil as it floats on the surface of water and the like. This apparatus and others, which are known to the applicant, are adapted for the removal from and/or separation of large patches of oil and/or grease in a large body or volume of water. The present invention is directed toward dishwasher apparatus and in particular for use in restaurants and fast food outlets where grease and/or cooking oil is present. The washing of dishes and cooking utensils used by these restaurants leave much to be desired in the disposal of the residual water. Often the dishes are dumped into the washer without removal of all, and in some cases without any removal of food scraps and/or cigarette butts. The discharge material from the dishwashing apparatus is often condemned by sanitary inspectors or like agency officials. The oil recovery apparatus and method of this invention provides a small unit particularly adapted for use with dishwashing apparatus.